The Stablecoin Liquidity Trap
Ex-Bank of Canada economist Mitchell and liquid fund veteran Kevin join the show to discuss Sierra, the evolution of liquid yield tokens.
The Gwart Show | Blockspace Media
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Show Notes
Kevin and Mitchell, Co-Founders of Sierra, talk about how their backgrounds in central banking and liquid funds led them to build a next-generation stablecoin protocol. We chat about the mechanics of yield, the regulatory landscape for platforms like Polymarket, and why the current shift in crypto is moving toward lean, efficient fintech models.
Notes:
* 95% to 100% of capital earns yield
* Money market yields currently 2-3%
* Industry shift to fintech and robotics
Timestamps:
00:00 Start
00:44 Mitchell's background
02:11 Kevin's background
03:41 What is Sierra?
05:07 Yield strategies
05:31 Why is Sierra different?
09:01 Abstracting complexity away
10:50 Assessing risk
14:40 Yield percentages
15:48 DeFi Summer yields
18:05 Why use Sierra?
24:00 RWAs & T-bills
27:34 RWA "quality"
32:20 What is "on-chain"?
37:14 Composability
42:04 Current state of funds
46:38 Future of venture funding
49:24 Winners & losers
The Gwart Show is sponsored by Ellipsis Labs. Ellipsis Labs builds the most efficient on-chain markets. Their orderbook and Prop AMM products have delivered price improvement to hundreds of billions of dollars in retail volume. Now, they are bringing their expertise to build Phoenix, the best on-chain perpetuals platform.
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